Corporate Governance and its Effect on Earnings Quality in Retail Industry of the United Kingdom


  • Mominah Waheed Khan University of Greenwich, Greenwich Campus, London SE10 9LS


Corporate Governance, Retail industry, Earning management, Board characteristics, CEO (Chief Executive Officer)


The main aim of this work is to find the possible relationship between the corporate governance & the earnings quality in UK retail sector, as well as to examine the effect using board characteristics (i.e. board independence, CEO duality and board size) on earnings management.. The five years data, for 2010 to 2014, from 38 retail and wholesale companies listed on London stock exchange has been analysed. The basic approach was to  perform regression analysis between the corporate governance (independent variables) and proxy for earnings quality, to determine the earnings management using accrual component (dependent variable). No relationship statistically significant  was found between the corporate governance variables and earnings quality. The only statistically significant result found from  the regression analysis is for 2014 , and  shows that the SIZE is a predictor variable for earnings quality with positive relation. The main limitation found has  been the size of data sample, but the study does show  insignificant results in line with some of the pervious studies. It also leads to the conclusion that, as the environment within the firms keep on  changing, the new variables of corporate governance can be used to investigate their impact on the earnings quality.


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How to Cite

Khan, M. W. (2017). Corporate Governance and its Effect on Earnings Quality in Retail Industry of the United Kingdom. Asian Journal of Applied Sciences, 5(5). Retrieved from